• EUR/GBP off the highs following some calm after gilt storm

• UK PM insists Reeves is here to stay, GBP regains composure, gilts recover

• However, it emphasises that the UK is walking on a fiscal tightrope

• As mentioned previously, the scars of 2022 remain

• Consequently, it is difficult to expect a larger GBP recovery vs EUR

• Dips likely to be faded. Initial support 0.8600, more at 0.8560/70 (200HMAs)

• Resistance = 0.8670 (Wed high), 0.8700
EURGBP hourly chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)